GST payable for alloted flats

This query is : Resolved

deepak patankar (Querist)
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30 August 2021 1. i gave development rights of my land in Pune to a builder on 4th july 2013 and was to be given flats of 2000 sq ft in lieu.
2. The builder has completed the building , obtained Occupation certificate on 20 oct 2020
3.The builder has handed over possession of the flats to me on 13 aug 2021after registration .
4. i got the payable stamp duty adjudicated from the Registrar against allotment which he calculated at ready reckoner rate of 3500 per sq ft and i have paid the same.
5.The builder is asking me to pay the GST at 12% on the value arrived at general market sale rate of 4500 per sq ft
Questions
a. why should any GST be payable if Occupation certificate exists on the date of document registration and possession- the builder says i have to pay as the agreement is on allotment basis
b. secondly , if at all GST is payable , why should it not be at the rate which even the registrar is ready to accept stamp duty i.e at the ready reckoner rate of rs 3500 per sq ft ?
3. Thirdly if GST is payable , is it payable to the builder or to the govt directly - the builder says he will give a proper receipt stating xyz amount has been paid as GST towards the flat alloted to me and the GST is to be paid to him .
will be obliged if all 3 questions are answered in detail. thnx, rgds.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 August 2021 a. The builder is right your flat is on allotment basis, allotted before completion certificate.
GST payable on building cost exclusive of land cost.
b GST payable on sale value fixed by builder to others less land value.
c GST payable only to the builder.
Land belongs to you so no need for registration of flat. You can avoid stamp duty.

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